Bruce Neuharth, who previously served as president and chief operating officer of Arrow Stage Lines in Omaha, Neb., will serve as CEO of the combined company and Grand Avenue founder Carl Haley will serve as Gray Line chief revenue officer and as a board member. He will maintain his position as Grand Avenue CEO and Nashville-based Grand Avenue's 45-vehicle livery business will continue to operate independently, according to the release.

"Combining Gray Line's operational excellence, bus expertise and depth of fleet with Grand Avenue's facilities, customer service and brand strength is a winning move for both of our companies, as well as our customers," Neuharth said in the news release. "Realizing that our companies' motor coach operations complemented each other perfectly, we jumped at the opportunity to join forces."

The combined company will employee more than 200 people and will likely make Gray Line the 20th biggest motor coach companies in the U.S., according to the release.